Enterprise glossary and term center
Research and understand all the intricate terms and definitions that surround the ecosystem of enterprise resource planning (ERP), enterprise software and no-code tools.
- Enterprise terms
- Forecast Error
- What is the formula for forecast error?
Forecast Error - What is the formula for forecast error?
There are many standards and some not-so-standard, formulas companies use to determine the forecast accuracy and/or error. Some commonly used metrics include: Mean Absolute Deviation (MAD) = ABS (Actual – Forecast) Mean Absolute Percent Error (MAPE) = 100 * (ABS (Actual – Forecast)/Actual)